Sunday, June 2, 2013

US Imposes Sanctions on Companies Doing Business with Iran

In a continuing effort to hinder Iran's nuclear program, the U.S. government recently took action against companies helping Iran to evade U.S. sanctions and doing illicit business with Iran.
Pursuant to Executive Orders (E.O.) 13622 and 13599, the Obama Administration imposed sanctions on a series of companies related to Iran’s petrochemical industry. These actions were taken to cut off funds from the Iranian petrochemical sector as the second largest revenue source for Iran’s illicit nuclear program.
More specifically, the U.S. Department of State imposed sanctions on Jam Petrochemical Company and Niksima Food and Beverage JLT pursuant to E.O. 13622 for knowingly engaging in a significant transaction for the purchase or acquisition of petrochemical products from Iran. Jam Petrochemical Company is an Iranian manufacturer and seller of petrochemicals. Niksima Food and Beverage JLT received payments on behalf of Jam Petrochemical Company. The sanctions selected for both companies prohibit: financial transactions subject to U.S. jurisdiction, transactions with respect to property and interests in property under U.S. jurisdiction, and foreign exchange transactions subject to U.S. jurisdiction.
In addition to these entities, the Department of the Treasury also identified eight Iranian petrochemical companies as owned or controlled by the Government of Iran.
The U.S. Departments of State and Treasury also took actions to impose sanctions, including a visa ban on corporate officers, on Ferland Company Limited (Ferland) under both the Iran Sanctions Act, as amended by the Iran Threat Reduction and Syria Human Rights Act of 2012 (TRA), and Executive Order 13608 for efforts to evade U.S. sanctions on Iran.
According to the U.S. government, in March 2013, Ferland and the National Iranian Tanker Company (NITC) cooperated in a scheme to sell Iranian crude oil deceptively in order to help Iran evade international sanctions. This operation involved a vessel owned by Dimitris Cambis, a Greek national sanctioned by the Department of State. The details of the ship-to-ship operations were arranged by a NITC manager and a representative of Ferland. Ferland later furnished a falsified certificate of origin as part of its cargo documentation, claiming that the crude oil loaded onto the Aldawha was a “product of Iraq.”
The sanctions imposed by the Department of State against Ferland prohibit: U.S. visas for corporate officers, loans from U.S. financial institutions, financial transactions subject to U.S. jurisdiction, transactions with respect to property and interests in property under U.S. jurisdiction, and foreign exchange transactions subject to U.S. jurisdiction. Separately, the sanctions imposed by the Department of the Treasury on Ferland generally prohibit U.S. persons from engaging in any
transactions with that entity.
(cgb)

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